HLS 13RS-680 ORIGINAL Page 1 of 4 Regular Session, 2013 HOUSE CONCURRENT RESOLUTI ON NO. 4 BY REPRESENTATIVE NORTON MEDICAID: Directs the secretary of DHH to expand eligibility standards for the La. Medicaid program to conform to those established in the Affordable Care Act A CONCURRENT RESOLUTI ON1 To authorize and direct the secretary of the Department of Health and Hospitals to take such2 actions as are necessary to expand the eligibility standards of the Medicaid program3 of this state to conform such standards to those established in the Affordable Care4 Act.5 WHEREAS, the legislation referred to collectively as the "Affordable Care Act" or6 "ACA" consists of the following Acts of Congress:7 (1) The Patient Protection and Affordable Care Act (PPACA), which originated as8 H.R. 3590 in the One Hundred Eleventh United States Congress and became Public Law No.9 111-148.10 (2) The Health Care and Education Reconciliation Act (HCERA), which originated11 as H.R. 4872 in the One Hundred Eleventh United States Congress and became Public Law12 No. 111-152; and13 WHEREAS, the ACA sets forth monumental health policy reforms, as it reshapes14 the way virtually all Americans will receive and finance their health care; and15 WHEREAS, among the key features of the ACA are rights and protections for health16 care consumers, accountability measures for insurance companies, expanded eligibility for17 the Medicaid program, and a requirement that every American maintain a minimum level18 of health insurance coverage; and19 HLS 13RS-680 ORIGINAL HCR NO. 4 Page 2 of 4 WHEREAS, in a decision announced on June 28, 2012, the United States Supreme1 Court in National Federation of Independent Business Et Al. v. Sebelius, Secretary of Health2 and Human Services, Et Al. upheld the overall constitutionality of the ACA; and3 WHEREAS, in the same ruling, a majority of the court held that the penalty for a4 state's nonparticipation in the expansion of Medicaid eligibility as provided in the ACA is5 unconstitutionally coercive because it entails withholding of all federal funds for existing6 Medicaid programs if a state does not expand Medicaid eligibility; and7 WHEREAS, the effect of this aspect of the court's decision is to make participation8 in the Medicaid expansion optional for the states; and9 WHEREAS, at twenty-five percent of the federal poverty level, or just under five10 thousand eight hundred dollars in annual income for a family of four presently, the income11 eligibility threshold of this state for Medicaid benefits for parents of Medicaid-eligible12 children is the second-lowest in the nation; and13 WHEREAS, the working poor of this state would benefit greatly from the expansion14 of Medicaid income eligibility, as provided in the ACA, to one hundred thirty-three percent15 of the federal poverty level, or thirty thousand seven hundred thirty-three dollars in annual16 income for a family of four presently; and17 WHEREAS, correspondingly, the working poor will be penalized to the greatest18 extent financially by the provisions of the ACA if this state refuses to participate in the19 Medicaid expansion and those families fail to maintain health coverage after January 1, 201420 as required by law; and21 WHEREAS, the ACA provides that Medicaid benefits for households who become22 eligible due to the expansion will be financed entirely with federal funds for the first three23 years of the expansion, and that the federal share of funding for benefits to these "new24 eligibles" will phase down from one hundred percent to ninety percent between 2017 and25 2020, with the federal share remaining at ninety percent in ensuing years; and26 WHEREAS, the Legislature of Louisiana does hereby affirm that the working poor27 of this state deserve access to health care, and that health care providers who serve the28 working poor must be assured of some amount of compensation for the care they deliver to29 this population; and30 HLS 13RS-680 ORIGINAL HCR NO. 4 Page 3 of 4 WHEREAS, health care for Louisiana workers who do not qualify for Medicaid,1 whose jobs do not provide health benefits, and who cannot afford private health insurance2 has traditionally been financed by the Medicaid and Medicare Disproportionate Share3 Hospital (DSH) programs, which currently provide major support to hospitals that furnish4 uncompensated care to low-income uninsured persons; and5 WHEREAS, the ACA stipulates that beginning in 2014, the federal government will6 dramatically reduce DSH funding as presently-uninsured Americans obtain either private7 health insurance or Medicaid coverage as provided in the ACA; and8 WHEREAS, a state refusing to participate in the Medicaid expansion in the face of9 dramatically reduced DSH funding would create a truly untenable situation for working poor10 families and for all hospitals of the state, as the federal Emergency Medical Treatment and11 Active Labor Act (EMTALA) requires hospitals to provide care to anyone needing12 emergency treatment regardless of their ability to pay, and such law includes no provisions13 for reimbursing hospitals for such care; and14 WHEREAS, compared with the economic and human costs of a crisis in health care15 financing arising from non-participation in the Medicaid expansion coupled with an16 impending loss of DSH funding, the costs to Louisiana of avoiding this crisis by17 participating in the Medicaid expansion are negligible; and18 WHEREAS, it is absolutely clear that for compelling economic and moral reasons,19 participation in the Medicaid expansion is in the best interest of this state.20 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby21 authorize and direct the secretary of the Department of Health and Hospitals to take all such22 actions as are necessary, including but not limited to amending the Medicaid state plan, to23 expand the eligibility standards of the Medicaid program of this state to conform such24 standards to those established in the Affordable Care Act.25 BE IT FURTHER RESOLVED that the secretary of the Department of Health and26 Hospitals shall submit to the Centers for Medicare and Medicaid Services the Medicaid state27 plan amendment necessary to institute the expanded eligibility standards as provided in this28 Resolution on or before September 1, 2013.29 HLS 13RS-680 ORIGINAL HCR NO. 4 Page 4 of 4 BE IT FURTHER RESOLVED that a suitable copy of this Resolution be transmitted1 to the secretary of the Department of Health and Hospitals.2 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Norton HCR No. 4 Authorizes and directs the DHH secretary to take such actions as are necessary to expand the eligibility standards of the Medicaid program of this state to conform such standards to those established in the Affordable Care Act ("federal health reform"); and to submit by Sept. 1, 2013 the Medicaid state plan amendment necessary to provide for the expansion.